President Donald Trump has threatened to impose a 100% tariff on imports from any country that levies a digital services tax on American companies.
The warning, issued via a post on Truth Social on Friday, targets European nations that are discussing the imminent implementation of such taxes.
The threat marks a significant escalation in the ongoing transatlantic trade dispute.
While the specific countries targeted were not named in the initial post, the policy directly challenges the digital services taxes adopted by several major European economies, including France and the United Kingdom.
These taxes were designed to ensure that large tech companies pay a fair share of revenue generated within their borders.
Markets are likely to react with increased volatility as investors assess the potential impact on trade flows and corporate earnings.